DOE's $994M West Valley Decommissioning Contract: A 15-Year Effort for Nuclear Site Remediation
Contract Overview
Contract Amount: $993,965,507 ($994.0M)
Contractor: CH2M Hill Bwxt West Valley, LLC
Awarding Agency: Department of Energy
Start Date: 2011-07-01
End Date: 2026-12-31
Contract Duration: 5,662 days
Daily Burn Rate: $175.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: THE DEPARTMENT OF ENERGY (DOE) HEREBY ISSUES FINAL REQUEST FOR PROPOSALS (RFP) NO. DE-SOL-0002084 PERTAINING TO THE PHASE 1 DECOMMISSIONING - FACILITY DISPOSITION ACTIVITIES TO TAKE PLACE AT DOE'S WEST VALLEY DEMONSTRATION PROJECT (WVDP) IN WESTERN NEW YORK STATE. SERVICES TO BE PROVIDED INCLUDE BUT ARE NOT LIMITED TO: HIGH LEVEL WASTE CANISTER RELOCATION AND STORAGE; CONTAMINATED FACILITY DECONTAMINATION, DEACTIVATION, DEMOLITION, DECOMMISSIONING AND CLOSURE; WASTE TANK FARM MANAGEMENT; CONTAMINATED WATER MANAGEMENT; NON-CONTAMINATED FACILITY DISPOSITION; WASTE MANAGEMENT; OPERATION AND MAINTENANCE OF FACILITIES AND INFRASTRUCTURE INCLUDING THE REMOTE HANDLED WASTE FACILITY; SAFEGUARDS AND SECURITY; JANITORIAL AND GROUNDS KEEPING SERVICES; LABORATORY SERVICES; STATE, FEDERAL AND DOE REGULATORY COMPLIANCE; RADIOLOGICAL MONITORING; AND ADMINISTRATIVE SUPPORT SERVICES. PROSPECTIVE OFFERORS ARE HEREBY REQUESTED TO SUBMIT PROPOSALS IN RESPONSE TO THE FINAL RFP WHICH DOE WILL EVALUATE AND AWARD ONE CONTRACT ON THE BASIS OF BEST VALUE TO THE GOVERNMENT.
Place of Performance
Location: WEST VALLEY, CATTARAUGUS County, NEW YORK, 14171
State: New York Government Spending
Plain-Language Summary
Department of Energy obligated $994.0 million to CH2M HILL BWXT WEST VALLEY, LLC for work described as: THE DEPARTMENT OF ENERGY (DOE) HEREBY ISSUES FINAL REQUEST FOR PROPOSALS (RFP) NO. DE-SOL-0002084 PERTAINING TO THE PHASE 1 DECOMMISSIONING - FACILITY DISPOSITION ACTIVITIES TO TAKE PLACE AT DOE'S WEST VALLEY DEMONSTRATION PROJECT (WVDP) IN WESTERN NEW YORK STATE. SERVICES TO BE … Key points: 1. Significant long-term commitment to nuclear site cleanup, indicating complex and hazardous work. 2. Contract awarded via full and open competition, suggesting a robust market for specialized remediation services. 3. Cost-plus award fee structure incentivizes contractor performance while managing inherent project uncertainties. 4. The extensive duration (over 15 years) points to the scale and complexity of decommissioning activities. 5. Geographic concentration in Western New York highlights a specific regional environmental challenge. 6. The broad scope of services covers a wide range of nuclear waste management and facility disposition needs.
Value Assessment
Rating: good
The total contract value of approximately $994 million over 15 years reflects the substantial scale and long-term nature of nuclear decommissioning. While a precise value-for-money assessment is difficult without detailed cost breakdowns and performance metrics, the cost-plus award fee (CPAF) structure allows for performance incentives. Benchmarking against similar large-scale nuclear decommissioning projects would be necessary for a more definitive value assessment, but the duration and scope suggest a reasonable allocation of resources for a complex federal undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to compete. The presence of six bidders (as suggested by 'no': 6) implies a competitive environment, which typically drives better pricing and service offerings. The extensive solicitation process for such a large and complex project likely ensured a thorough evaluation of technical capabilities and cost proposals.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for a critical environmental cleanup mission, reducing the risk of overpayment for specialized services.
Public Impact
The primary beneficiaries are the taxpayers and the environment, through the safe and effective cleanup of a former nuclear fuel reprocessing site. Services delivered include high-level waste management, facility decontamination, demolition, and long-term site maintenance. The geographic impact is concentrated in Western New York, addressing a specific legacy environmental issue. Workforce implications include the creation of specialized jobs in nuclear decommissioning, environmental remediation, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term nature of the contract introduces potential for cost overruns if not managed tightly.
- Complexity of nuclear waste handling and decommissioning carries inherent safety and environmental risks.
- Reliance on a single contractor for an extended period could lead to vendor lock-in or reduced innovation over time.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market for these specialized services.
- Cost-plus award fee structure provides incentives for contractor performance and efficiency.
- The extensive scope covers all necessary aspects of decommissioning, ensuring a comprehensive approach.
- Long-term contract duration allows for sustained focus and expertise development on a critical mission.
Sector Analysis
This contract falls within the Environmental Remediation and Waste Management sector, a critical area for government agencies dealing with legacy industrial sites. The market for nuclear decommissioning is highly specialized, with a limited number of experienced contractors capable of handling such complex and hazardous operations. The Department of Energy (DOE) is a major player in this sector, often awarding large, long-term contracts for site cleanup and disposition. Comparable spending benchmarks would involve other large-scale environmental cleanup projects, particularly those involving nuclear materials.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Given the highly specialized nature of nuclear decommissioning, it is likely that prime contracting opportunities are limited to large, experienced firms. However, the prime contractor, CH2M HILL BWXT WEST VALLEY, LLC, may engage small businesses for subcontracting roles in areas such as support services, logistics, or specialized equipment, though this is not explicitly detailed.
Oversight & Accountability
Oversight for this contract is primarily managed by the Department of Energy (DOE), which is responsible for the West Valley Demonstration Project. The contract's cost-plus award fee structure necessitates robust oversight to ensure performance objectives are met and costs are controlled. Transparency is expected through regular reporting requirements and potentially through DOE's Inspector General's office, which investigates fraud, waste, and abuse in DOE programs.
Related Government Programs
- Department of Energy - Environmental Management
- Nuclear Waste Disposal
- Site Remediation Services
- Hazardous Waste Management
- Federal Facility Cleanup
Risk Flags
- Long-term contract duration
- Complex hazardous material handling
- Nuclear decommissioning scope
- Cost-plus contract type
Tags
department-of-energy, west-valley-demonstration-project, nuclear-decommissioning, remediation-services, hazardous-waste-management, new-york, definitive-contract, cost-plus-award-fee, full-and-open-competition, large-contract, environmental-cleanup
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $994.0 million to CH2M HILL BWXT WEST VALLEY, LLC. THE DEPARTMENT OF ENERGY (DOE) HEREBY ISSUES FINAL REQUEST FOR PROPOSALS (RFP) NO. DE-SOL-0002084 PERTAINING TO THE PHASE 1 DECOMMISSIONING - FACILITY DISPOSITION ACTIVITIES TO TAKE PLACE AT DOE'S WEST VALLEY DEMONSTRATION PROJECT (WVDP) IN WESTERN NEW YORK STATE. SERVICES TO BE PROVIDED INCLUDE BUT ARE NOT LIMITED TO: HIGH LEVEL WASTE CANISTER RELOCATION AND STORAGE; CONTAMINATED FACILITY DECONTAMINATION, DEACTIVATION, DEMOLITION, DECOMMISSIONING AND CLOSURE; WASTE TANK FARM MANAGEMENT; CONTAMI
Who is the contractor on this award?
The obligated recipient is CH2M HILL BWXT WEST VALLEY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $994.0 million.
What is the period of performance?
Start: 2011-07-01. End: 2026-12-31.
What is the historical spending trend for the West Valley Demonstration Project prior to this contract?
Detailed historical spending data prior to the award of this specific contract (which began in 2011) for the West Valley Demonstration Project (WVDP) is not directly available in the provided data. However, the WVDP has a long history dating back to the 1980s, involving various phases of operation, decommissioning planning, and initial cleanup activities. Federal spending on such large-scale environmental remediation projects is typically characterized by significant, multi-year appropriations that can fluctuate based on project milestones, regulatory requirements, and available funding. The total value of this definitive contract, over $993 million, suggests a substantial and sustained investment by the DOE in addressing the legacy waste and facilities at West Valley over its projected 15-year duration.
How does the cost-plus award fee (CPAF) structure incentivize performance for this nuclear decommissioning contract?
The Cost-Plus Award Fee (CPAF) structure for this contract is designed to incentivize the contractor, CH2M HILL BWXT WEST VALLEY, LLC, to achieve specific performance objectives while managing costs. Under CPAF, the contractor is reimbursed for allowable costs incurred. In addition to cost reimbursement, a fee is awarded based on the contractor's performance against pre-defined criteria. These criteria typically relate to technical execution, schedule adherence, safety, environmental compliance, and cost control. A portion of the fee is fixed, while the larger portion is variable and contingent upon meeting or exceeding these performance targets. This structure encourages the contractor to not only complete the work but to do so efficiently and effectively, aligning their interests with those of the government and taxpayers.
What are the primary risks associated with the decommissioning of the West Valley Demonstration Project?
The primary risks associated with the decommissioning of the West Valley Demonstration Project are multifaceted, stemming from the nature of nuclear materials and complex infrastructure. These include: 1) **Environmental Risks:** Potential for radioactive contamination release during demolition, waste handling, or transportation, requiring stringent containment and monitoring. 2) **Safety Risks:** Exposure of workers to radiation and hazardous materials, necessitating rigorous safety protocols and protective measures. 3) **Technical Risks:** Unforeseen conditions within legacy facilities, complexities in handling high-level waste, and challenges in waste characterization and disposal. 4) **Cost Overruns:** The inherent uncertainties in decommissioning can lead to unexpected costs, especially given the long duration of the contract. 5) **Schedule Delays:** Technical challenges, regulatory hurdles, or unforeseen site conditions can impact the project timeline. 6) **Security Risks:** Ensuring the security of nuclear materials and facilities throughout the decommissioning process is paramount.
What is the significance of the 'Remediation Services' NAICS code (562910) in the context of this contract?
The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' is highly significant as it precisely categorizes the core services being procured under this Department of Energy contract. This code encompasses establishments primarily engaged in cleaning up sites contaminated with hazardous waste, including the treatment, stabilization, and disposal of that waste. For the West Valley Demonstration Project, this means the contract covers activities such as decontaminating facilities, demolishing structures, managing radioactive and hazardous waste, and restoring the site. The use of this specific NAICS code signals to potential bidders the specialized nature of the work and helps the government in tracking spending within this critical environmental sector.
How does the geographic location in Western New York influence the contract's execution and oversight?
The geographic location of the West Valley Demonstration Project in Western New York (NY) has several implications for the contract's execution and oversight. Firstly, it concentrates a significant federal environmental cleanup effort in a specific region, potentially impacting the local economy through job creation and the need for local support services. Secondly, state and local regulatory agencies in New York will likely play a role in overseeing environmental compliance and permitting processes, in addition to federal oversight by the DOE. The remoteness or specific environmental conditions of the site might also influence logistical planning, transportation of materials, and emergency response preparedness. Finally, the long-term presence of a major federal project like this can foster community relations and require ongoing communication with local stakeholders regarding safety and progress.
What does the contract type 'DEFINITIVE CONTRACT' imply about the government's commitment?
The designation of this contract as a 'DEFINITIVE CONTRACT' signifies a firm commitment by the government to procure the specified goods or services. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts or other more flexible arrangements, a definitive contract typically outlines specific terms, conditions, quantities (or scope), and prices for the entire duration of the agreement. For a large, long-term project like the West Valley decommissioning, this provides the contractor with a high degree of certainty regarding the government's intent and financial commitment, enabling them to make significant investments in personnel, equipment, and planning. It suggests that the scope of work is well-defined enough to establish these firm terms, although the cost-plus nature allows for flexibility in actual expenditures within the overall ceiling.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SALVAGE SERVICES › DEMOLITION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0002084
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,082,859,532
Exercised Options: $1,082,859,532
Current Obligation: $993,965,507
Actual Outlays: $409,228,823
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-07-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-03-19
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